ArmInfo. As of August 31, 2023, Armenia's national debt totaled $11.387bln - a 7% increase this January-August (a $749.2mln increase), and a 5% or AMD 208.5bln increase. The period under review saw further AMD appreciation against the USD - AMD 480/$1 to AMD 385/$1.
According to the data by the RA Ministry of Finance, Armenia`s national debt in USD terms increased by $757.7mln (7.5%) - from $10,086.4mln (2022 end) to $10,844.1mln. The government's debt in AMD terms increased by 215.9bln (5.4%) - up to 4,185.6bln.
Armenia's foreign debt (the country's liabilities to international organizations, foreign states and funds received from Eurobond issues) increased by $194 mln (3.3%) or 6,088mln, decreasing by AMD 30.1bln or by 1.3% - from AMD 2,319.7mln down to AMD 2,349.9mln.
During the period under review, the domestic debt increased by $563.8 mln or by 13.4% - from $4.192.3mln (AMD 1,650bln) as of the end of 2022 to $4.756.1mln (AMD 1,835.7bln).
The CBA`s debt increased by 1.5% or by $8.5mln - from $551.3mln or AMD 217bln to 542.8 or AMD 209.5bln. Loans against government guarantees decreased from AMD 34.3bln down to AMD 31.4bln, or from $87.1mln down to $81.1mln.
As of the end of August 2023, the share of domestic debt in the government debt increased from 41.6% at the end of 2022 up to 43.9% (29.4% by the end of 2021 and 46.6% by the end of April), with the AMD debt increasing from 37.9% at the end of 2022 up to 42.6% (28.28% by the end of 2021). Only 16.3% of the government debt was at a fixed rate (17.1% at the end of 2021 and 16.5% by the end of last year).
Words pay no debts
This January-August, the financing of budget deficit from net borrowings totaled AMD 240.6bln (with the amount under the annual programme being AMD 483.3bln), with AMD 252.6 bln due to internal resources (with the amount under the annual programme being AMD 310.9bln), AMD 12bln from external sources (with the amount under the annual programme being AMD 127.4bln).
A total of AMD 136.1bln of the AMD 272.9bln budgeted under the annual programme were directed to serving the government debt (interest payments).
According to the government debt repayment schedule up to 2054, next year Armenia is to direct a little more than $1.5bln (the CBA's debt not included) to paying and serving the government debt accumulated by the end of August; nearly AMD $2bln in 2025; a little more than $1.4bln in 2029; over $1.7bln in 2031.
As of August 31, 2023, the unclaimed balance of the government debt totaled $4,468.5mln ($4,503.9mln as of August 31, 2022).
The World Bank is Armenia`s major creditor, - the share of the International Bank for Reconstruction and Development and International Development Association in Armenia`s national debt being 37.7%. The Asian Development Bank ranks second - 18.6%, followed by the IMF (7.6%), Eurasian Development Bank (7.6%) and European Investment Bank (2.9%). The share of external loans from the EU is 1.6%, the International Fund for Agricultural Development (IFAD) (1.2%), OPEC Fund for International Development (0.8%), EBRD (1%).
As regards creditor-nations, Russia ranks first (6.3% share in the external loans and borrowings of Armenia's government), followed by France (5.5%), Germany (KfW, 5.1%), Japan (3.1%), China (0.4%), the USA (0.2%), and Abu Dhabi Fund for Development (0.1%) of Armenia's foreign debt.
Forecast by financial authorities
According to the forecasts underlying the 2023 budget, Armenia's national debt is to reach AMD 4,645ln or 49.8% of the country's GDP by December 31, 2023, with an expected 0.3% decline as compared with the end of 2022.